Hassan Maishera
TL;DR
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Gemini exchange is looking to launch overseas derivatives operations.
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The crypto exchange seeks to take advantage of the collapse of FTX and Binance’s recent troubles with regulators.
Gemini To Launch Derivatives Operation Abroad
The Information reported that the US-based cryptocurrency exchange, Gemini, is planning to launch an international cryptocurrency derivatives exchange.
The exchange, founded by Tyler and Cameron Winklevoss, would launch a platform that would specifically offer perpetual futures. Perpetual futures are derivative products that are currently banned in the U.S. for retail traders as they don’t have an expiration date and can be traded with sizable leverage. Hence, they are considered a highly risky product.
This latest development comes after the FTX cryptocurrency exchange collapsed in November and Binance’s recent troubles with the Commodity Futures Trading Commission (CFTC).
According to the report, the collapse of FTX and Binance’s regulatory challenges may end up leaving a sizable market share up for grabs, and Gemini wants to become a dominant player in the international derivatives trading market.
Gemini is not the only cryptocurrency exchange looking to take advantage of the current opportunities in the market. A recent report revealed that Coinbase was also planning to launch an overseas platform to enable it offer perpetual futures.
Similar to Binance, Coinbase is facing regulatory challenges in the United States after the U.S. Securities and Exchange Commission (SEC) served it a Wells Notice a few days ago.
The report concluded that Gemini has been reaching out to trading firms in recent months in a bid to serve as market makers for an overseas operation.
